Gold prices declined sharply on Friday as hawkish comments from US Federal Reserve officials triggered a broad sell-off in financial markets.

Spot gold fell 1.9% to $4,092.72 per ounce, while December gold futures dropped 2.4% to $4,094.20. The retreat followed remarks from several Fed policymakers that pushed back against market expectations for an imminent interest rate cut, reinforcing the central bank’s commitment to maintaining restrictive policy amid persistent inflation concerns.

The shift in tone weighed heavily on precious metals. Spot silver slid 2.8% to $50.84 per ounce, platinum lost 2.1% to $1,547.30, and palladium declined 2.8% to $1,387.25. Rising Treasury yields and a stronger U.S. dollar—both side effects of a more hawkish Fed stance—increased the opportunity cost of holding non-yielding assets like gold.

Despite the sharp pullback, most precious metals ended the week with gains, supported by earlier optimism that softer economic data might prompt the Fed to begin easing by year-end. However, recent signals from central bank officials have tempered those hopes.

Investors now await key economic releases, including inflation and employment data, for further clues on the Fed’s policy trajectory. All eyes will be on the December FOMC meeting, where policymakers are expected to provide updated guidance on the path of interest rates.